‘Aerospace corridor’ might mean jobs, cash

The aerospace industry is responsible for up to 100,000 jobs between Northern Kentucky to Dayton. Among the most high-profile is GE Aviation’s facility in Peebles, above. Area officials hope to be designated an “aerospace corridor.”(Photo:
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A federal program could boost region’s ‘aerospace corridor’

The rich aviation history of the Cincinnati-Dayton region, from the Wright brothers’ workshop and General Electric’s aircraft engine plant to one of the nation’s largest Air Force bases, could be leveraged into a $1 billion boost.

Economic development leaders in the region hope to win a federal designation that could put the region’s “aerospace corridor” first in line for economic development aid.

The amount of money isn’t set and the program is so new federal officials are reluctant to estimate its impact, but the potential windfall to Southwest Ohio and Northern Kentucky is huge.

Anything related to the aerospace industry – scientific research, workforce training, construction projects – could conceivably get a boost in the form of federal grants and loans.

“It matters because it could lead to significant investments,” said Matt Davis, interim executive director of REDI Cincinnati, an economic development group involved in the project. “There are a lot of people in line for federal grant dollars, and it helps to be as far ahead in that line as you can be.”

The federal program, known as the Investing in Manufacturing Communities Partnership, will award about a dozen “manufacturing community” designations in the next two to three months. At least 44 have applied for the designation so far. All are required to explain their strengths in a particular industry, come up with a plan for long-term growth and show how federal aid could speed the process along. Officials with the U.S. Economic Development Administration say they hope to pick the winners within the next two months.

Bid helps foster cooperation among region’s communities

If the local bid is among those winners, the region would be assigned a concierge, of sorts, to guide communities and companies through the complicated process of applying for federal assistance from dozens of different agencies. More important, they’d be given preferential treatment when bidding for that assistance for at least the next two years. They wouldn’t be guaranteed money, but they’d be a lot more likely to get it.

“It’s not like they’re saying, ‘Here’s $1 billion. Take it,’” said Denise Hamet, economic development director in Middletown. “It just makes it easier for us.”

Since the program is new, it’s not clear how much easier it will be. But economic development officials are excited about the possibilities and say the application process already is paying dividends. For one thing, they say, the region’s communities are cooperating on strategy instead of competing with one another, which often is their first instinct. The effort has encouraged what some say is unprecedented collaboration between civic leaders in Dayton, Cincinnati, Middletown and Northern Kentucky.

“It’s great having all these people working together,” Hamet said.

Cincinnati Mayor John Cranley said the opportunity to brand the entire region as an aerospace hub is encouraging more cooperation. “When we jointly market the region, it makes us even more competitive nationally and internationally,” he said.

That cooperation inspired economic development officials to carry out the first comprehensive study of the region’s historic and economic ties to aerospace. What they found surprised even those who have worked here for years: The region has among the highest concentrations of aerospace-related companies and workers in the nation, with more than 100,000 people employed in supply chain businesses such as metal stamping, tooling and materials. That doesn’t include the thousands more who work at GE Aviation facilities in Evendale and elsewhere in Southwest Ohio, or at suburban Dayton’s Wright-Patterson Air Force Base, one of the largest bases in the country.

Because of all those workers, Ohio supplies more aviation-related parts than any other state to Boeing and Airbus, the world’s leading aircraft manufacturers. “The only things we don’t manufacture here are the planes,” said John Owen, director of research at the Dayton Development Coalition. “We have everything else.”

The research into aerospace here found some holes, too, most notably in workforce training. If all those aerospace companies and suppliers want to keep growing, they need employees skilled enough to navigate an increasingly high-tech workplace.

Several regional officials said investing in workforce training would be a priority if their bid is a winner.

Win or lose, though, Owen said the region will benefit from the effort. “We have a full picture of the assets and ways to solve some of the potential gaps in what we’re doing.”

Smaller businesses likely to see a bigger benefit

Some say aerospace isn’t the only industry that would benefit from the federal designation, even though that would be the focal point. Aerospace attracts highly skilled and educated workers who are capable of succeeding in a wide range of industries. Bringing more of those workers into the local economy improves the overall quality of the labor force and makes the region more attractive to other businesses.

“There’s going to be a much bigger impact on the area than just aerospace,” Hamet said.

Within the aerospace industry, smaller companies might benefit more from the new federal program than the big ones. GE Aviation, for example, is a multibillion-dollar business that can afford to launch big projects on its own. Some of its suppliers, though, have just a few dozen employees and a more limited budget. Anything that helps those companies add scientists, engineers and skilled workers to the regional economy is a good thing, said Rick Kennedy, spokesman for GE Aviation.

He said many of those employees volunteer in the community, sit on boards and teach at local colleges. “It affects the community beyond just the payroll,” Kennedy said. “It’s an intellectual capital you’re competing for.” ⬛

What is the aerospace corridor?

The region is competing with at least 44 other applicants to win one of the nation’s first “manufacturing community” designations. The goal: Brand Southwest Ohio and Northern Kentucky as an aerospace corridor.

A winning bid would put the region at the front of the line for more than $1 billion in federal economic development assistance related to aerospace, from at least a dozen federal agencies.

Cincinnati, Dayton, Middletown and other communities are working together on the bid. If they win, local officials say they’ll pursue more federal aid for workforce training, construction, research and other projects.